Gold jewellery sales is likely to increase by up to 15 per cent during 'Dhanteras' compared to last year as prices have steadied, experts said. "We are expecting an about 10-15 per cent growth in jewellery sales during 'Dhanteras' compared to last year as footfalls have increased.
Prices have also steadied and is ruling over Rs 19,500 per 10 grams level," Ashok Minawala, chairman, Former All India Gems and Jewellery Association told PTI. Dhanteras is the first day of the five-day Diwali festival and is considered auspicious for buying gold and silver.
The total jewellery sales across the country stood at Rs 1,12,000 crore (Rs 1.12 trillion) last year during Dhanteras, which is to be celebrated on November 3, Minawala said.
Gold prices, which had touched a high of Rs 20,120 on October 15, started falling on profit-taking, creating buying interest. Presently, prices have again started climbing due to a weakened US dollar and was on Monday ruling at Rs 19,725 in the domestic market and at $1,362 and ounce (28.34 grams) in the international markets.
"The recent correction in price encouraged people to book gold jewellery and coins. We are expecting a 10-15 per cent jump in business this year," All India Gems and Jewellery Trade Federation (GJF) Chairman, Vinod Hayagriv, said.
The Federation did a fair amount of promotions across the country this year and there are positive indications that business will boom this season, he said.
Sumesh Wadhera of GJF said that despite the price ruling over Rs 19,000 mark, jewellery bookings are higher this year. "Going by this trend, we expect robust sales both in jewellery and coins," he said.
According to a World Gold Council statement, investments in gold have witnessed a healthy demand through 2010 and with the festive season on the anvil it is only expected to get better with investors making a beeline for products like medallions and ETFs.
India's volume of gold in investments has grown by 264 per cent to 92.5 tonnes in the first-half of 2010 as compared to 25.4 tonnes in the previous corresponding period, WGC said.
In value terms, investments accounted for Rs 14,800 crore (Rs 148 billion) for the same period. The upswing in gold investments speaks volumes of the investor confidence in the yellow metal, it said.
However, Bombay Bullion Association Director, Suresh Hundia, expressed a divergent view, saying the business is likely to remain the same as last year in volume terms.
"As the prices are so high, it is difficult for people to buy gold and they are diverting their funds towards consumer goods and home appliances. So volume-wise, the business will be less. However, value-wise it may be the same as last year," he said.
